Glossary of Option Terms: Black-Scholes Model
Black-Scholes Model
Definition: A model that helps determine theoretical value of an option based on volatility and time until expiration. Although this is a theoretical value, it is essentially the industry standard. Developed by Fischer Black and Myron Scholes.
Related Articles:
- Black-Scholes Model: Finding Fair Value And 30% Returns in Two Days
- Two Rules for Beating the Market Makers
Related Terms:
|
